Reserves and Reserve Funds

Reserves and Reserve Funds

Table of Contents 1 Overview... 2 2 Forecast Changes... 4 2.1 Operating Reserves and Reserve Funds... 5 3 Capital Reserve Funds... 8 3.1 Capital Highlights... 9 3.2 10 Year Forecast Schedule... 14 3.3 Federal and Provincial Contribution Reserve Funds... 17 3.4 Development Charges Reserve Funds... 20 3.5 Cash in lieu of Parkland Dedication... 21 3.6 Reserve and Reserve Fund Descriptions... 22 Business Plan 2012 Update S-1

1 Overview Reserves and Reserve Funds are established by Council to assist with long term financial stability and financial planning. These funds are set aside to help offset future capital needs, obligations, pressures and costs. They are drawn upon to finance specific purpose capital and operating expenditures as designated by Council, to minimize tax rate fluctuations due to unanticipated expenditures and revenue shortfalls, and to fund ongoing projects and programs (i.e. insurance and employee benefits) The following chart shows the relationships between the different funds: Capital Fund Reserves and Reserve Funds Operating Fund Reserves are different from reserve funds in that they are generally used in conjunction with the Operating Program and support or supplement activities which are normally funded from general revenues. Interest earned by reserves appears within the Financial Transactions - Investment Income Program which is part of the operating budget. A reserve is generally used either to mitigate the impact of fluctuations in operating costs and revenue or to accumulate funds for future or contingent liabilities. Examples of reserves currently employed by the City to mitigate budgetary fluctuations include: Reserve for Winter Maintenance, Reserve for Commodities, Reserve for Assessment Appeals and the Reserve for Elections. Reserves established to fund future or contingent liabilities include: Reserve for Legal Settlements, Reserve for General Contingencies and Reserve for Vacation Pay. Reserve Funds are segregated and restricted to meet a specific purpose. Money set aside for reserve funds must be deposited into a separate bank account and the interest earned on those investments must be added to the reserve funds. Examples of reserve funds used to fund capital projects are Development Charges and Cash-in-Lieu of Parkland Dedication. Although some reserve funds, such as Insurance, are used in conjunction with the Operating Program, reserve funds are most commonly associated with the Capital Program. Funds are accumulated within a reserve fund to provide funding for future works. The funds are invested until required. Once Council approves the capital works, funds are transferred to the appropriate capital projects. Reserve funds used in the Capital Program are financed either as part of the annual transfer of tax funding from the Operating Program, or are collected as a charge upon development. Some Reserve Funds are established from funding transfers from the Federal and Provincial S-2 Business Plan 2012 Update

Governments, as a requirement of receiving the funding such as Gas Tax funding. Tax based reserve funds are used to accumulate the funding necessary for the maintenance and eventual replacement of the City s extensive infrastructure. A number of capital reserve funds have been established to assist with long term financial planning. These include Transit Vehicles and Equipment Replacement, Fire Vehicles and Equipment Replacement and Roadway Infrastructure Maintenance Reserve Funds. Development based reserve funds are used to finance capital projects to meet growth. Most of the funding is collected under the authority of the City s Development Charges By-law, as permitted by the Development Charges Act, 1997 or other development related fees under the Planning Act. Services receiving funding from development charges include: fire, libraries, recreation, roads, transit, parking, public works, storm water management, and general government. A summary of the City s reserves and reserve funds along with their purpose can be found at the end of this section. Business Plan 2012 Update S-3

2 Forecast Changes The following chart provides a summary of the projected Reserves and Reserve Funds as compared to 2012. Operating and Capital Reserves & Reserve Funds Summary Projected Projected ($000's) ance ance Change 2012 $ % Operating 108,692 105,569 (3,123) (2.9%) Capital 215,029 175,553 (39,476) (18.4%) Development Deferred Revenues 63,255 85,708 22,453 35.5% Total 386,976 366,830 (20,146) (5.2%) Note: Numbers may not add due to rounding The 2012 balances in the Operating and Capital Reserves and Reserve Funds are estimated to decline by $20.1 million or 5.2 percent from. The decline in the operating reserves is a result of one-time projects and the phasing in of building permit revenue and planning fees which completes 2012. The reduction in the Capital Reserve funds reflects the planned decline of the City s tax based reserve funds to fund its capital program and the financing of the construction of the Bus Rapid Transit project. This project is funded partially by funds advanced from senior levels of government which are held in reserve funds. Per the City s new Debt Management Policy approved by Council December 14 th, commencing in 2012, the City will maintain an estimated minimum cash balance of $100 million in the capital tax based reserve funds on a cash flowed basis. S-4 Business Plan 2012 Update

2.1 Operating Reserves and Reserve Funds The balances of the Operating Reserves and Reserve Funds are projected to decline over the next year. Compared to, the balance in the Operating Reserves are anticipated to decline by $2.8 million or a 6.2%. The decline is primarily due to use of reserves to fund one-time expenses associated with proposed new initiatives for studies based on the strategic plan with the intention of growing services that are important to the taxpayers of Mississauga. Examples include Malton Area plan, Ninth Line corridor review, project management training plan and the Mississauga Waterfront revitalization. Total reserve funds are expected to decrease by $0.3 million mainly due to increases in costs in the Workers Compensation Fund. Total Operating Reserves And Estimated 2012 Projected Change in 2012 Projected ance Reserve Funds ances ance ance to Estimated ance (000's) $ $ $ % Total Reserves 45,084 42,290 (2,794) (6.2%) Total Reserve Funds 63,608 63,279 (329) (0.5%) Total Reserves And Reserve Funds 108,692 105,569 (3,123) (2.9%) Business Plan 2012 Update S-5

Transfers to Operating Reserves and Reserve Funds 2012 Budget $ Transfer to Reserves 1,570,000 Transfer to Reserve Funds 3,726,000 Transfer to Reserves and Reserve Funds 5,296,000 Interest Income 2,182,000 Total Transfers to Reserves and Reserve Funds 7,478,000 The 2012 Operating Program recommends transfers to Operating Reserves and Reserve Funds totalling $5,296,000. Transfer to the Reserves and Reserve Funds are as follows: $2,598,000 to the Insurance Reserve Fund to fund future insurance claims; $1,050,000 to the Workers Compensation Reserve Fund; $750,000 to the Transit bus shelter advertising to reflect increased operating contributions; $500,000 to the Reserve for Elections to fund future municipal elections; $309,000 in transfers to the Reserve for Assessment Appeals for changes in taxes generated through changes in the assessed values of property and to mitigate revenue losses through ongoing assessment appeals ($250,000) and $59,000 for year 3 of a 21 year repayment to the Reserve for Assessment Appeal for the $1.2 million paid for the annexation of the Ninth Line lands from this fund; and $89,000 to fund life insurance claims and purchase life insurance policies for retired employees and insurance actuarial review. S-6 Business Plan 2012 Update

Transfers from Operating Reserves and Reserve Funds 2012 Requested Budget Transfer from Reserves 4,365,000 Transfer from Reserve Funds 6,237,000 Total Transfer from Reserves and Reserve Funds 10,602,000 The 2012 Operating Program recommends transfers from Reserves and Reserve Funds totalling $10,602,000. Highlights of the transfers are as follows: $3,564,000 from the Insurance Reserve Fund to cover the payments of estimated claims; $2,416,000 recovery of one-time expenses associated with new initiatives such as installation of recycling receptacles on the City s road allowance and Malton area and Ninth Line corridor plan reviews; $2,630,000 from the Workers Compensation and Sick Leave Reserve Funds to offset estimated costs; $64,000 from the Reserve for Election for election related costs; $929,000 recovery of various one-time items including parking strategy, community improvement plans, mobility hub and environmental master plan; $587,000 in funds transferred from the Operating Budget Reserves to complete outstanding work in 2012; $185,000 primarily for a staff workplace violence training program required under the Occupational Health and Safety Amendment Act; 2010; and $227,000 for various other transfers. Business Plan 2012 Update S-7

3 Capital Reserve Funds Capital Reserve Funds are monies set aside for the repair and major maintenance costs of capital infrastructure and for large (i.e. new) capital expenditures such as the renovation of a community centre or road reconstruction. The Continuity Schedule of Capital Reserve Funds can be found at the end of this section along with projected balances to December 31, as well as a 10 year forecast for various capital based reserve funds. 2012 Capital Program Reserve Funds ($000) Estimated ance $ 2012 Projected ance $ % Change Capital Program - Tax Funded 105,828 65,611 (40.0%) Capital Program - Development Deferred Revenues 63,255 85,708 35.5% Capital Program - Other 109,201 109,942 0.7% Total Capital Reserve Funds 278,284 261,261 (6.9%) S-8 Business Plan 2012 Update

3.1 Capital Highlights ($000) 2012 Requested Budget $ Total Transfers to Capital Reserve Funds 156,154,109 Total Transfers to Capital Reserve Funds Included in the 2012 Budget are recommendations that $156.2 million be transferred to various Capital Reserve Funds (both taxbased and growth related) with details as follows: $52,629,165 in sharing of gas tax revenue from the Federal and Provincial Governments; $40,000,000 in estimated development charge revenues; $27,584,280 transfer from General Revenue to the Capital Reserve Fund for 2% infrastructure and debt levy; $15,500,000 transfer from the Capital Reserve Fund to the Facility Repair and Renovation Reserve Fund; $13,500,000 transfer from the Capital Reserve Fund to the Roadway Infrastructure Reserve Fund; $3,070,000 in estimated parkland dedication contributions; $2,000,000 transfer from the Capital Reserve Fund to the Fire Vehicles and Equipment Reserve Fund; $1,492,000 transfer from the Capital Reserve Fund to the Mainfleet Vehicle and Equipment Reserve Fund $197,664 contribution from repayment of Living Arts Centre loan from Development Charges to the Capital Reserve Fund; $90,600 in estimated cost sharing initiative for the Courtneypark Artificial Turf; $60,400 in estimated profit sharing from the BraeBen Golf Course and the Region of Peel; and $30,000 in estimated sponsorship for Riverwood. Business Plan 2012 Update S-9

($000) 2012 Requested Budget $ Total Transfers from Capital Reserve Funds 181,450,933 Total Transfers from Capital Reserve Funds The 2012 Budget recommends transfers from tax-based and growth-related Capital Reserve Funds of $181.5 million to activities and projects as follows: $117,339,000 from Capital Reserve Funds to finance non-growth tax-based projects in the 2012 Capital Budget; $37,891,464 for various transit related initiatives including funding of transit expansion costs contained in the Operating Budget; $20,988,018 from Development Charges to fund growth based projects; $2,914,203 from developers contributions to fund growth based projects; $999,000 from Parkland Dedication Reserve Fund to fund land acquisitions and certain capital project; $915,948 in various Development Charge transactions; and $403,300 funding of Project Management Support Office. S-10 Business Plan 2012 Update

Continuity Schedule of Operating Reserves and Reserve Funds ($000's) Reserves and Reserve Funds Operating Program Reserves Jan Contrib n Interest Expends Dec 31/11 2012 Contrib n 2012 Interest 2012 Proj td Expends Reserve for the Arts 1,882 (362) 1,520 (412) 1,108 Reserve for Assessment 7,043 309 7,352 309 7,661 Appeals Reserve for Commodities 5,028 5,028 5,028 Reserve for Current Budget 354 587 (354) 587 (587) 0 Reserve for Building Permits Revenue Stabilization 49 49 49 Reserve for Bus Shelter Advertising 644 644 750 (750) 644 Reserve for Development Stabilization 3,858 (1,129) 2,730 (830) 1,900 Reserve for Early Retirement 500 500 500 Reserve for Elections 1,684 450 (499) 1,635 500 (141) 1,995 Reserve for General Contingencies 5,013 (2,600) 2,413 11 (840) 1,584 Reserve for Labour Settlements 3,574 1,526 (152) 4,948 (360) 4,588 Reserve for Legal Settlements 1,836 1,836 1,836 Reserve for Planning Process Updates 2,390 (15) 2,375 (445) 1,930 Reserve for Vacation Pay 5,820 5,820 5,820 Reserve for Winter Maintenance 8,313 (666) 7,647 7,647 Operating Programs Reserve Funds Group Benefits Reserve Fund 4,216 78 149 (20) 4,423 78 156 4,657 Insurance Reserve Fund 31,537 2,598 1,088 (3,484) 31,739 2,598 1,094 (3,564) 31,867 Proj td Dec 31/12 Business Plan 2012 Update S-11

Reserves and Reserve Funds Jan Contrib n Interest Expends Dec 31/11 2012 Contrib n 2012 Interest 2012 Proj td Expends Reserve Fund Other 95 2 (54) 44 1 (44) 1 Sick Leave Reserve Fund 10,373 354 (500) 10,227 349 (500) 10,076 Workers Compensation Reserve Fund 17,755 950 601 (2,130) 11,175 1,050 582 (2,130) 16,678 Total Operating Reserves and Reserve Funds 111,965 6,498 2,194 (11,964) 108,692 5,296 2,182 (10,602) 105,569 Note: Numbers may not add due to rounding. Proj td Dec 31/12 Continuity Schedule of Capital Reserves and Reserve Funds (based on committed funding) ($000's) Reserves and Reserve Funds Jan Contrib'n Interest Expends Dec 31-11 2012 Contrib'n 2012 Interest 2012 Expends Dec 31-12 Capital Program - Tax Funded 2009 Special Projects Capital Reserve Fund 7,072 226 (611) 6,687 229 (150) 6,766 Britannia Hills Golf Course 102 82 4 (82) 106 60 5 (20) 151 Capital Reserve Fund 104,822 21,990 1,314 (67,853) 60,273 27,782 284 (79,938) 8,401 Community Facility Redevelopment Reserve Fund 3,652 128 3,780 132 3,912 Courtneypark Artificial Turf Reserve Fund 536 91 19 646 91 19 756 Facility Repair & Renovations Reserve Fund 2,818 6,300 41 (7,947) 1,212 15,500 18 (16,205) 525 Federal & Provincial Contributions 38,606 52,671 936 (64,534) 27,679 52,629 1,485 (37,892) 43,901 Fire Vehicles & Equipment Reserve Fund Main Fleet Vehicle & Equip. Reserve Fund 891 2,000 26 (2,135) 782 2,000 1 (2,752) 31 3,145 111 50 (1,820) 1,486 1,492 (2,978) 0 Roadway Infrastructure Reserve Fund 3,027 22,000 66 (23,148) 1,945 13,500 8 (15,213) 240 Transit Vehicles & Equipment Reserve Fund 23,434 41 (22,243) 1,232 31 (335) 928 S-12 Business Plan 2012 Update

Reserves and Reserve Funds Capital Program - Other Jan Contrib'n Interest Expends Dec 31-11 2012 Contrib'n 2012 Interest 2012 Expends Dec 31-12 Development Charges Reserve Fund 1,990 29,940 199 (18,602) 13,527 40,000 474 (21,904) 32,097 Developer Contributions Reserve Fund 47,475 697 1,631 (1,582) 48,221 1,586 (2,914) 46,893 General Mun. Dev. Reserve Fund-Lot 53,136 (1,158) 1,817 (64) 53,731 1,881 55,612 Levy General Mun. Dev. Reserve Fund- 7,167 50 161 (128) 7,250 30 307 (150) 7,437 Other Parkland Dedication Reserve Fund 47,937 9,506 1,682 (9,398) 49,726 3,070 1,813 (999) 53,610 Total Capital Program Reserve Funds 345,810 144,280 8,341 (220,147) 278,284 156,154 8,273 (183,450) 261,261 Grand Total 457,867 150,778 10,535 (232,111) 386,976 161,451 10,455 (194,052) 366,830 Note: Numbers may not add due to rounding. Business Plan 2012 Update S-13

3.2 10 Year Forecast Schedule The following chart summarizes the funds on hand, budget allocations and closing balances for the Capital and its Subsidiary Reserve Funds, based on committed funds in uninflated dollars, as a result of this year's capital budget and forecast to 2021. Based on cashflow, balances will be $100.0M or more at the end of each year. Capital and Subsidiary Reserve Funds ($000 s) Dec 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2021 Total Opening ance Transfers/ Loans 75,145 77,648 21,041 53,455 40,125 38,727 36,357 33,308 30,756 28,210 25,926 (124) (206) (37) (91) (130) (144) (108) (108) (114) (115) (116) 75,145 (1,291) Revenue Stream Interest Estimate Total Available ance Projects Financed from Reserves - 27,584 21,219 32,826 35,134 38,156 41,172 44,349 47,694 51,209 54,933 404,276 2,626 712 1,808 1,357 1,310 1,229 1,126 1,040 954 877 781 13,819 77,648 105,738 54,030 87,547 76,440 77,968 78,547 78,590 79,289 80,181 81,524 491,949 84,697 575 47,422 37,713 41,611 45,239 47,834 51,079 54,255 58,442 468,867 Unallocated ance 77,648 21,041 53,455 40,125 38,727 36,357 33,308 30,756 28,210 25,926 23,082 23,082 Note: A 2 percent infrastructure levy and debt repayment has been included for 2012 to 2021. S-14 Business Plan 2012 Update

Capital Submitted Budget Reconciliation to Projects Financed from Reserves ($000 s) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2021 Total Capital Budget Submitted 105,432 132,237 105,886 106,065 120,483 111,632 109,476 118,497 102,867 119,272 1,131,847 Capital Reductions required based on 2% Infrastructure and Debt Financing Levy 53,000 27,000 28,000 42,000 32,000 30,000 39,000 24,000 40,000 315,000 Allocation to Projects Revised Capital 105,432 79,237 78,886 78,065 78,483 79,632 79,476 79,497 78,867 79,272 816,847 Debt Financing-Cash Flowed 20,735 78,661 31,464 40,352 36,872 34,393 31,643 28,419 24,612 20,830 347,981 Projects Financed from Reserves 84,697 575 47,422 37,713 41,611 45,239 47,834 51,079 54,255 58,442 468,867 Business Plan 2012 Update S-15

Cash Flow ances for Capital Reserve Fund ($000s) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Opening Cash ance 190,953 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 Revenue Stream 27,782 31,522 33,076 35,345 38,352 41,404 44,582 47,920 51,434 55,158 Debenture Financing 20,735 79,390 33,548 44,014 42,557 42,552 42,456 41,951 40,868 39,943 Total Available ance 239,471 214,412 170,124 182,859 184,409 187,456 190,538 193,370 195,802 198,601 Allocation to Projects 139,471 114,412 70,124 82,859 84,409 87,456 90,538 93,370 95,802 98,601 Total Available ance 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Interest Estimate 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 Closing Cash ance 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 103,500 S-16 Business Plan 2012 Update

3.3 Federal and Provincial Contribution Reserve Funds These Reserve Funds include receipts from Federal and Provincial governments primarily related to Gas Tax and funding for transit initiatives. Federal and Provincial Contribution Reserve Funds ($000's) Nov 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2021 Total Opening ance 41,135 27,679 43,901 40,126 64,037 77,232 52,142 36,723 29,896 34,334 43,480 490,684 Transfers/ Loans (22,903) (20,845) (18,089) (16,158) (14,808) (15,100) (15,100) (15,100) (15,100) (15,100) (15,100) (183,401) Revenue Stream 8,511 52,629 52,629 52,629 52,629 52,629 52,629 52,629 52,629 52,629 52,629 534,802 Interest Estimate 936 1,485 1,357 2,165 2,612 1,763 1,242 1,011 1,161 1,470 1,834 17,036 Total Available ance 27,679 60,948 79,799 78,763 104,470 116,524 90,913 75,263 68,587 73,333 82,843 859,122 Allocation to Projects 0 17,047 39,673 14,727 27,238 64,382 54,190 45,367 34,253 29,853 28,617 355,346 Unallocated ance 27,679 43,901 40,126 64,037 77,232 52,142 36,723 29,896 34,334 43,480 54,226 54,226 Business Plan 2012 Update S-17

Details of the revenue streams are included below: ($ millions) 2012 2013 2014 2015 2016 Total Provincial Gas Tax $15.1 $15.1 $15.1 $15.1 $15.1 $75.5 Federal Gas Tax (City Portion) $20.5 $20.5 $20.5 $20.5 $20.5 $102.5 Federal Gas Tax (Regional Portion) $17.0 $17.0 $17.0 $17.0 $17.0 $85.0 Subtotal $52.6 $52.6 $52.6 $52.6 $52.6 $263.1 Provincial BRT Funding $65.0 Federal BRT Funding $58.0 Total $386.1 * Funding for Ontario Bus Replacement was eliminated in 2010. Provincial Gas Tax The use of Provincial gas tax funding to support Transit growth has allowed the expansion of Transit service with a reduced tax impact. Future Transit expansion will be funded through property taxes and transit revenues. The share of the Provincial Gas Tax is affected by ridership levels and may fluctuate in future years. Federal and Regional Portion of Federal Gas Tax Reserves The Federal Gas Tax funding can be used for up to two of the following capital programs: transit, road infrastructure, storm drainage or energy conservation. Detailed transit studies and plans are being prepared to determine the best use of these funds. To date, Mississauga is using gas tax revenues only to improve transit services and grow ridership. The use of the Federal gas tax revenues is restricted for certain purposes. To be eligible for funding, municipalities cannot reduce their existing/historical spending on capital projects. Similar to Provincial gas tax revenues, Federal gas taxes cannot be used to reduce property taxes. In order to help address the City s growing gridlock problems, Mississauga plans to invest Federal gas tax revenues to expand transit infrastructure, improve transit services and with the elimination of the Ontario Bus replacement program, to help finance bus replacements. As such, Federal gas taxes are not available to fund general capital infrastructure needs. Municipalities across Canada continue to ask for an escalation to the Gas Tax to ensure its value does not depreciate over time. The receipts in were $20.5 million with a total of $102.5 million being received over the next five year period. Also, the Region of Peel, since 2006 has flowed through any S-18 Business Plan 2012 Update

Federal gas tax receipts to the lower tier municipalities after accounting for TransHelp requirements. The City s capital forecast assumes this will continue and includes receipts totalling $17 million over the 2012 to 2015 of $68 million. To 2021 the receipts are estimated at $170 million. The use of the Federal gas tax revenues is restricted for certain purposes. These funds can be applied to no more than two of the following city services: transit, storm water systems, community energy systems and road infrastructure. Other Transit Based Reserve The province has provided a one-time support of public transit with $65 million to fund Mississauga s Bus Rapid Transit (BRT) project a separated roadway connecting the Mississauga/Oakville border to Renforth Drive via Highway 403 and Eglinton Avenue. Business Plan 2012 Update S-19

3.4 Development Charges Reserve Funds The following chart summarizes the funds on hand, budget allocations and closing balances for the Development Charges Reserve Funds, as a result of this year's capital budget and forecast to 2021. Development Charges Reserve Fund - All Services ($000's) ance Dec 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2021 Total Opening ance Transfers/ Loans Revenue Stream Interest Estimate Total Available ance Allocation to Projects - All Services Unallocated ance 14,063 13,527 32,097 45,773 35,197 61,441 54,308 25,770 24,063 25,277 28,122 14,063 (736) (916) (1,326) (1,117) (966) (909) (1,051) (1,050) (1,025) (1,025) (1,020) (11,142) 0 40,000 60,385 52,121 47,427 43,641 42,694 42,769 42,094 42,175 41,357 454,664 200 474 676 520 908 803 381 356 374 416 534 5,641 13,527 53,085 91,832 97,297 82,566 104,975 96,332 67,844 65,506 66,843 68,993 808,799 0 20,988 46,060 62,100 21,125 50,667 70,563 43,781 40,229 38,721 32,845 427,078 13,527 32,097 45,773 35,197 61,441 54,308 25,770 24,063 25,277 28,122 36,148 36,148 S-20 Business Plan 2012 Update

3.5 Cash in lieu of Parkland Dedication The revenue generated from cash in lieu of parkland dedication is expected increase from $3.1 million to $14.2 million. Increases occurring in future years are expected to be registered where sizable developments are not dedicating parkland. These projections are reviewed on an ongoing basis and any necessary amendments will be reflected in future budget documents. Cash in lieu Parkland Dedication Reserve Fund ($000's) Dec 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012-2021 Total Opening ance 48,034 49,726 53,610 26,867 21,581 18,363 11,670 12,214 5,266 5,453 7,283 48,034 Transfers/ Loans 10 10 10 10 10 10 10 10 10 10 10 110 Revenue Stream 0 3,060 4,590 6,120 6,885 7,650 8,415 9,945 10,710 12,355 14,168 83,898 Interest Estimate 1,682 1,813 909 730 621 395 413 178 184 246 153 7,323 Total Available ance 49,726 54,609 59,118 33,727 29,097 26,418 20,508 22,347 16,170 18,064 21,614 351,397 Allocation to Projects 0 999 32,251 12,146 10,733 14,748 8,295 17,081 10,717 10,781 17,081 134,832 Unallocated ance 49,726 53,610 26,867 21,581 18,363 11,670 12,214 5,266 5,453 7,283 4,533 4,533 Business Plan 2012 Update S-21

3.6 Reserve and Reserve Fund Descriptions Throughout this document, there are a number of references to various reserves and reserve funds. Each of these is explained below. Reserve Name Purpose of the Fund Reserve for Assessment Appeals Reserve for Building Permit Revenue Stabilization Provides for the contingent liability for possible refund of taxes in respect of outstanding assessment appeals pending against the City. Provides funds for legal and hearing fees related to major appeals. Provides for sufficient funds to continue operating and capital needs of the building permits process affected by fluctuating development. Reserve for Commitments - City Provides unspent but committed monies from the Year s budget to fund obligations outstanding at year-end which will be paid in the upcoming year. Reserve for Commodities Provides funds for the fluctuating costs of commodity based expenses such as hydro, natural gas, diesel, etc. Reserve for Development Stabilization Provides for unspent but committed development, planning and inspection work or for stabilization of the revenue budget in years when the development-related revenues received is below the five-year average. Reserve for Early Retirement Benefits Provides for the city s portion of the early retirees benefit premiums. Reserve for Elections Provides for the cost of holding municipal elections by making annual contributions to the reserve. Reserve for General Contingencies Provides monies for unforeseen or uncertain liabilities and contingencies. Reserve for Labour Settlements Provides funds for potential obligations resulting from outstanding labour agreements and labour related issues. Reserve for Legal Settlements Reserve for Planning Process Update Provides for potential costs of outstanding legal matters. Provides monies for periodic updates to Official Plans, District Plans and Zoning by-law review, as required by the Planning Act R.S.O. 1990 c. P.13, as amended. S-22 Business Plan 2012 Update

Reserve Name Purpose of the Fund Reserve for Vacation Pay Provides for the liability of unpaid vacation time earned by permanent employees of the City as at December 31 st. Reserve for Winter Maintenance Provides funds for stabilizing the City s Winter Maintenance Program. Operating surplus monies from this program may be placed in this reserve. Reserve Fund Name 2009 Special Projects Capital Reserve Fund Britannia Hills Golf Course Reserve Fund Purpose of the Fund Provides funds, made available from re-allocated grant funded projects, set aside for special capital projects throughout the City. Provides funds for the construction and maintenance of the former Britannia Hills Golf Course (now called BraeBen). Capital Reserve Fund Provides funds, including capital cash receipts not required for the retirement of debenture debts as prescribed by Section 413 (2) of the Municipal Act, 2001 S.O. 2001, c.25. Funds may be used for: o the construction or improvement of any municipal works; o the acquisitions or expropriation of land required for Municipal purposes; o o the acquisitions of vehicles or equipment for Municipal purposes; and the payment of debentures of the Corporation for any the aforementioned purposes. Capital Revolving Fund Closed in 2009 with all funds being transferred to the Capital Reserve Fund to provide funds for ongoing infrastructure needs. Cash in Lieu of Parking Reserve Fund Pursuant to the Planning Act R.S.O. 1990 c.p.13 as amended, monies received in lieu of parking are to be set aside in this reserve fund and are to be spent only for parking initiatives. Business Plan 2012 Update S-23

Reserve Fund Name Purpose of the Fund Cash in Lieu of Parkland Dedication Pursuant to the Planning Act R.S.O. 1990 c.p.13 as amended, monies received in lieu of parkland dedication are to be set aside in this reserve fund and are to be spent only for the acquisition of land to be used for park or other recreational purposes, including the erection and repair of buildings and the acquisitions of machinery for park or other public recreational purposes. City Centre Promotions Reserve Fund Community Facility Redevelopment Reserve Fund Provides monies of the purpose or conducting a City Centre Promotion Campaign Provides funds for the renovation and refurbishing of facilities, such as community centres, pools, libraries and arenas. Courtneypark Artificial Turf and Synthetic Track Reserve Fund Provides funds for the replacement and future maintenance of the Courtneypark artificial turf, synthetic track and its related equipment. Developer Contribution Reserve Funds These reserve funds consist of contributions for specific municipal infrastructure collected as a condition of land development. Examples include, but are not limited to sidewalks, roads, traffic signals and tree planting. Development Charges Reserve Fund: City-wide Engineering; Transit; Fire; Recreation; Library; Public Works; Parking General Government; Hershey Debt; Living Arts Centre Debt; Storm Drainage Pursuant to the Development Charges Act, 1997, S.O. 1997, c. 27, as amended, monies collected under the Act shall be placed into a separate reserve account for the purpose of funding growth related net capital costs for which the development charge was imposed under the Development Charges By-law. Facilities Repair and Renovations Reserve Fund Provides for capital projects for repairs and renovations to City facilities. S-24 Business Plan 2012 Update

Reserve Fund Name Federal Public Transit Reserve Fund Purpose of the Fund Revenues are intended to support expenditures for municipal public transportation services. Fire Training Centre Replacement Reserve Fund Provides funds for the construction of a new fire training centre. Fire Vehicles and Equipment Replacement Reserve Fund Provides funds for the replacement of Fire vehicles and equipment approved in the annual capital budget. Cash receipts resulting from the sale of fire vehicles and equipment shall be deposited into this reserve fund. Gas Tax (Federal) Reserve Fund Gas tax revenues are intended to support expenditures for municipal public transportation services, storm water systems or community energy systems. Gas Tax (Provincial) Reserve Fund Gas tax revenues are intended to support expenditures for municipal public transportation services. General Municipal Development Reserve Fund Main Fleet Vehicle and Equipment Replacement Reserve Fund Provides funds required to service growth in the City, including, but not limited to municipal infrastructure required to service growth in the City, including but not limited to municipal highways, recreational facilities, fire stations and equipment, libraries and land. This Reserve Fund consists of funds collected under lot levy policies in effect prior to 1991. Provides funds for the replacement of main fleet vehicles and equipment approved in the annual capital program. Cash receipts resulting from the sale of main fleet vehicles and equipment shall be deposited into this reserve fund. Metrolinx Bikelinx Reserve Fund Provides funds for the purchase and installation of bicycle racks on transit vehicles and secured and safe bicycle parking. Miscellaneous Contributions Reserve Fund Mississauga Garden Park Development and Maintenance Provides funds such as those generated through fund raising or community donations, for miscellaneous works to be undertaken by the City to offset other miscellaneous expenses. Provides funds solely for the purpose of the Mississauga Garden Park (now Riverwood) Development as well as providing funds for the long term maintenance costs of the park. Business Plan 2012 Update S-25

Reserve Fund Name Purpose of the Fund Reserve Funds Mississauga Rapid Transit (MRT) Reserve Fund MoveOntario 2020 Higher Order Transit Reserve Fund Provides for the construction and maintenance of the MRT bus way system and services. $65 million was received from the Province of Ontario in 2006 (now called the Mississauga Bus Rapid Transit BRT). Provides funds to be used for the MoveOntario 2020 Dundas and Hurontario Higher-Order Transit Corridor Development. Ontario Bus Replacement Program Reserve Fund Provides funds for the replacement of municipal transit buses. Provincial Road and Bridge Infrastructure Reserve Fund Provides funds to be used for the investment in the City of Mississauga s capital municipal roads and bridges infrastructure. Provincial Transit Grant Reserve Fund Provincial funding provided to improve and expand public transit. Roadway Infrastructure Maintenance Reserve Fund Provides fund for the reconstruction and resurfacing of the City road network. Sick Leave Reserve Fund Provides for the payment to employees for vested sick leave credits as defined in By-law 95-74. Transit Vehicles & Equipment Replacement Reserve fund Provides funds for the replacement of Transit vehicles and equipment approved in the annual capital budget. Cash receipts resulting from the sale of Transit vehicles and equipment shall be deposited into this reserve fund. Workers Compensation Fund Provides funds for the payment of compensation, outlays and expenses assessed to be payable by the City as an employer under the Workplace Safety and Insurance Act, 1997 S.O. 1997, c.16 as amended. Provides funds for actuarial services to establish the appropriate level. S-26 Business Plan 2012 Update